Tax FAQs

Lease your property below market rates with HomeGround Real Estate Sydney and qualify for tax benefits.

Tax Deduction

You can claim the foregone rent as a donation by offering reduced rent, reducing your taxable income and minimizing personal income tax liability. No minimum discount or timeframe is required, and even a 10% reduction can make a meaningful impact on families in need of affordable housing.

Boost your CGT Exemption

Additionally, commit to leasing your property at 20% or more below market rates for at least three years. You may be eligible for a 60% capital gains tax exemption on events occurring after January 1, 2018, for affordable housing provided on or after that date. This 10% exemption is in addition to the standard 50% discount for holding an investment property for over a year.

For example, you could save on taxes if your property’s market rent is $560 per week, but you’re leasing it for $420 per week. If you sell an investment property with a purchase price of $500,000 and a sale price of $600,000, the 60% capital gains tax exemption could result in significant tax savings.

For more information on tax benefits for landlords and to find out if you qualify, contact HomeGround Real Estate. Remember that the details provided are general, and it’s advisable to consult with your financial adviser, accountant, or property adviser for personalized advice on these tax benefits.

Lease your property below market rates with HomeGround Real Estate Sydney and qualify for tax benefits.

Tax Deduction

You can claim the foregone rent as a donation by offering reduced rent, reducing your taxable income and minimizing personal income tax liability. No minimum discount or timeframe is required, and even a 10% reduction can make a meaningful impact on families in need of affordable housing.

Boost your CGT Exemption

Additionally, commit to leasing at 20% below market rates for at least three years. You may be eligible for a 60% capital gains tax exemption on events occurring after January 1, 2018, for affordable housing provided on or after that date. This 10% exemption is in addition to the standard 50% discount for holding an investment property for over a year.

For example, you could save on taxes if your property’s market rent is $560 per week, but you’re leasing it for $420 per week. If you sell an investment property with a purchase price of $500,000 and a sale price of $600,000, the 60% capital gains tax exemption could result in significant tax savings.

For more information on tax benefits for landlords and to find out if you qualify, contact HomeGround Real Estate. Remember that the details provided are general, and it’s advisable to consult with your financial adviser, accountant, or property adviser for personalized advice on these tax benefits.

Please note that the information contained on this website is general in nature and is not financial or taxation advice.  Please consult your professional taxation and financial professionals before making any decisions.

Read the fine print of the ATO Tax Ruling: